Nearly 6 Million Americans Behind Federal Student Loan Payments, Risking Default

Student loan struggles are intensifying for millions of Americans, with nearly 6 million borrowers behind on federal payments and many at risk of default, which can severely damage credit scores and lead to wage garnishment. Experts advise contacting loan servicers to explore repayment plans and highlight options like loan rehabilitation and consolidation to get out of default. Meanwhile, a new TikTok trend allows creators with substantial followings to earn money through the platform's Creator Rewards Program, helping them and others pay down student debt by sharing their stories and building supportive communities. Concurrently, Congressional Republicans are proposing an overhaul to simplify student loan repayment for future borrowers, introducing a standard plan with fixed monthly payments over 10 to 25 years based on debt size, alongside a Repayment Assistance Plan for those with financial hardships. Financial advisors emphasize the importance of thorough research on education financing, encouraging students to consider loans over credit card debt due to better terms and potential forgiveness, while also managing time and stress effectively. Additionally, working part-time during college not only helps cover expenses but can provide unexpected social benefits and personal growth, making it a valuable part of the college experience.